Youth Villages 2 Case Study Solution and Analysis
Introduction
Youth Villages 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP offers a variety of services consisting of; gathering info, processing information and interaction services. Major company sectors of the company include; books, periodicals, consultancy and distribution. The company has a huge item portfolio and its significant items consist of books, regulars, online media, exhibits, research reports etc. Youth Villages 2 Case Study Solution has ended up being a specialized details company and a big comprehensive Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Youth Villages 2 Case Study Help has spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring specific challenges to the publishing market in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing companies in the industry.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The improvement of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the company could be made use of to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Youth Villages 2 Case Study Help has specific strengths that can be utilized to minimize the hazards, overcome the weak point and avail the chances. Strengths of CMP are given as follows;
• The long term experience of Youth Villages 2 Case Study Help in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower cost using its previous experiences.
• The technical resources and capabilities produced by its effective journey offer a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its consumers.
• Strong monetary position enables the business to think about a number of advancement chances with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Youth Villages 2 Case Study Help are provided as follows;
• Despite of being a science and technology publishing company, the business still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain growth strategies to avoid its dependence over the Chinese markets to attain long term development.
Opportunities
The development of the publishing market is decreasing given that 2008, impacting Youth Villages 2 Case Study Help as well, but the growth could be revived by availing specific chances provided in the market. The marketplace chances for CMP include;
• The business might also introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by using its huge financial resources.
Hazards
The changing macro patterns in the market and increasing competition in the publishing industry has postured certain hazards to Youth Villages 2 Case Study Solution including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Youth Villages 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entryway of new publishing companies in the industry along with existence of high competition increases the threat of losing the consumer base.
Financial Analysis.
The business has a quite competitive financial performance. Due to absence of information, the monetary ratios of CMP could not be computed. The total monetary efficiency of the company could be evaluated by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the yearly overall profits of CMP during the duration 2000-2012 are growing at a high growth rate, revealing that the annual demand of the products of Youth Villages 2 Case Study Help is growing and the business is quite efficient in drawing in a a great deal of clients at a potential cost.
Together with it, the second graph which shows the annual development in the Youth Villages 2 Case Study Solution total assets, shows that the company is rather effective in including worth to its assets through its incomes. The growth in assets reveals that the overall value of the company is likewise increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis relating to the distribution of overall incomes of the business. Huge part of the revenues of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The business could move towards other business sectors with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be carried out to discover the numerous external forces affecting the performance of the company and the recent patterns in the external environment of the business. A quick PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is extremely supervised and assisted by the Promotion Department of the Communist Celebration of China. It might be stated that the overall political forces affecting CMP business are high. The government policies concerning the publishing sector are also increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in basic and the Youth Villages 2 Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the total company at CPM. China's financial conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The customer preferences are moving towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP include the technological improvement in the reading techniques and so on. Improvement of science and innovation in addition to the rise of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Youth Villages 2 Case Study Help includes the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink used while publishing should not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Federal government to be entered in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's Five Forces Model might be used to examine the beauty of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Hazard of New Entrants.
Threats of new entrants in the Chinese Publishing Industry is moderate. The possible development in the market tends to attract brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The alternative items for the published files is the documents presented in the digital libraries on certain websites. The altering consumer choices towards digital knowing increase the hazard of substitution for the industry.
Competitive Rivalry.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Youth Villages 2 Case Study Help include the providers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP runs in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Youth Villages 2 Case Study Solution consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIPis among the close competitors of CMP. Established in the very same duration, CIP releases comparable type of books. For a large period, CIP held the largest market share, and still ranks second and 3rd in different market sections, with a significant focus on academic publications. CIP functions as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Youth Villages 2 Case Study Solution quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same duration as Youth Villages 2 Case Study Help and CIP. It is also one of the prominent players in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Clients
• Growth chances.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to consumers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the business to lose demand of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company together with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are shifting towards digital publishing and the business require an immediate service to avoid the decreasing market growth. Intro of digital publishing could prove to be an instant solution with low quantity of threat for the company. However, the company could likewise think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its product portfolio, the company must initially collects the information related to the consumer demand, the prospective markets, the government guidelines and the information related to the rivals provided in the market. If the preliminary offering shows a success, the company needs to go for the other markets. In this method the company would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is declining considering that 2008, showing a risk to the business's long term existence, but the scenario can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entryway in the new markets.
